Future outlook on LED industry patent disputes

The LED market is expected to reach $91.46 billion at a CAGR of 15% by 2020. Globalization has intensified competition in the LED industry, making it difficult for a single manufacturer to be an industry hegemon. As a result, large LED companies will continue to intensify their aggressive crackdown on patent infringements.

Taiwanese and Chinese LED manufacturers that have quickly expanded their LED business rely on Chinese market consumption, and don’t have strong patent portfolio. When these companies try to venture into oversea markets, it can be foreseen that global LED companies will launch a full range of patent infringement assaults against them.

The LED industry is flooded with companies all over the world, but it will be restructured in a manner similar to the memory semiconductor market a few years ago, where only a few majorLED companieswith strong patent portfolio and technology strengths will remain. At the end of 2015, the LED industry are expected to pay the harsh price for shaking the market foundations with mass production and low-price strategies, and ignoring patent regulations.